This Form Is Prepared to Document the Need to Make

question 28

Multiple Choice

This form is prepared to document the need to make a purchase and requests that the specific items and quantities be purchased.

• A)Purchase order
• B)Purchase requisition
• C)Purchase invoice
• D)Purchase journal

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Definitions:

Subsidiary Ledger Accounts

Detailed accounts contained within a subsidiary ledger, tracking individual transactions related to a specific customer, supplier, or type of item.

Accounts Receivable

Money owed by customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Accounts payable are liabilities representing the amount a business owes to its suppliers or creditors for goods and services received but not yet paid for.

Cash Receipts Journal

A journal used to record all cash inflows or money received by the business.